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    1. Describe three (3) factors that would cause a company to continue doing business in traditional ways and avoid electronic commerce

    2. Choose one (1) major difference between the first wave and the second wave of electronic commerce. Also, what transaction costs and why are they important?

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    Solution Preview

    3 factors that would cause a company to avoid using e-commerce:
    1. Too expensive. For example, consider a business like a used book store. They would usually repurchase unsold books from publishers and sell them for a fraction of the price. Thus, a normal book that would cost $20 retail would have a selling price of $7.50 at the used book store. In general, the used book store would purchase that same book from the publisher for around $4/book. Thus, in general, it would not be cost efficient for the used book store to go through the motions of installing an e-commerce system because the ...

    Solution Summary

    The expert describes three factors that would cause a company to continue doing business in tradition ways and avoid electronic commerce.